Wen Bottom?
May 6, 2022
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FOMC Recap
This week, investors were provided with one of the bigger “head-fakes” in recent history. The May FOMC meeting took place on Tuesday and Wednesday, after which Jerome Powell announced a 50-bps rate increase to the target Fed Funds rate and plans to commence with the balance sheet runoff less than a month from today. While these measures were largely priced in, his statements did take the risk of a 75-bps rate hike at the next meeting off the table. As a result, equities, and other risk assets, including crypto, pumped into the market close on Wednesday. Unfortunately, the bo...